Posted by Doug Jones on March 14, 1999 at 10:39:16:
What about offering these FSBO owners 90-95% of FMV
with $1000 down and 7-8% interest pmts for 2-3 years.
Then advertise : $5000 down, little or no credit
Call XXX
Sell for full price with 10% interest.
Example Buy $90,000
7.5% $556 month
Sell $100,000
10% $791 month
Buyers pay Taxes and Ins.
If there are plenty of houses to chose from, you should find sellers that can wait 2-3 years to get
close to full price.
Good Luck
I guess I can’t see the forest for the trees, need tips! - Posted by Jeff
Posted by Jeff on March 13, 1999 at 16:38:15:
I live in an area of about 90,000 people. I?ve had an ad in the paper that says “I Buy Houses, any condition, pay cash, call xxx-xxxx” for 7 days now and received absolutely no calls at all. I?ve been calling on “real estate for sale” ads and people are very adamant about not wanting to GIVE their homes away.
There is probably opportunity all around me and I?m just not seeing it. My area is undergoing a recession and their are more FSBOs in the newspaper than ever before. Foreclosures are at an all time high, and so is unemployment. Statistically, the average home value here is about $70,000.
Can anyone give me some tips on where I might be missing the opportunities in an economic environment such as I?ve described? I have no money but lots of enthusiasm! Does anyone have experience with 82-8-10 formula for buying, selling, creating a note, and selling the note, all at a simultaneous closing? With that system, is it true that I can offer as much as 80% of the FMV and still make profit. (buy a 100,000 house for 80,000, sell it for 100,000, creating and selling the note in the process)
Thanks to all of you for being so free with your knowledge gained through experience.
Jeff
Re: I guess I can’t see the forest for the trees, need tips! - Posted by Craig_NOLA
Posted by Craig_NOLA on March 15, 1999 at 01:41:28:
Jeff,
First thing: You must give yourself time to be successful. You can’t expect your phone to instantly ring off the hook just because you put an ad in the paper. With my ad, I’ll sometimes get 5 calls in a week and then nothing at all for 2-3 weeks.
My best advice is to read everything that you can get your hands on about finding motivated sellers. Putting an ad in the paper is just one strategy among dozens. There is an excellent “How to” article by Ron Legrand on this very site that should get your gears turning. In fact, if you enter the words “motivated seller” in the archive box at the top of the screen and hit search, you’ll probably find posts detailing several more.
As for your second question, yes it is possible to make money by doing “retail flips” using simultaneous closings. I’m doing a simultaneous close on Friday on a property for which I paid 82% of the appraised price and yet will walk away from closing with a NET profit of $8000 in cash. Not all the money in the world, but I just bought 2 more properties this weekend and will be doing the same with them.
Hope this helps. Feel free to e-mail me if you have any more questions.
Craig